Portugal’s government is gearing up to restart the privatization process for its flag carrier, TAP Air Portugal, in 2025. The decision follows strong interest from over a dozen potential buyers, including major international players, signaling the continued attractiveness of the airline market in Portugal.
The planned privatization of TAP, which has been a key player in Portugal’s aviation sector, comes after a series of strategic developments that have improved its financial standing. Despite previous delays due to political shifts, the government is now ready to proceed with the sale, aiming to attract both national and international investors.
The move is part of Portugal’s broader effort to streamline its state-owned enterprises and foster greater private-sector participation in the economy. TAP, once struggling, has made a strong recovery in recent years, positioning itself as an appealing asset for potential buyers.
“We will start the process of privatizing the company in 2025 and have already listened to all interested parties,” said Miguel Pinto Luz, Portugal’s Minister of Infrastructure, in a statement. Pinto Luz also emphasized that TAP’s financials have improved significantly, with its operating results now in line with, or even surpassing, European competitors.
TAP’s status as Portugal’s flagship carrier and its central role in connecting the country to strategic international markets — including Brazil, Angola, Mozambique, and the U.S. — will be protected, according to the Minister. “No matter the final privatization model, TAP’s brand and its Lisbon hub will remain intact,” Pinto Luz assured.
In September 2023, a prior government administration had laid the groundwork for privatizing at least 51% of TAP, but the process stalled after Portugal’s snap elections in March 2024, which led to a change in leadership. Prime Minister Luis Montenegro, who previously advocated for a full privatization, now appears open to a more flexible approach, signaling the possibility of a partial sale instead of a complete exit from state ownership.
Portugal’s Ministry of Infrastructure has confirmed interest from several high-profile airlines, including European giants such as Air France-KLM, Lufthansa, and British Airways-owner International Airlines Group (IAG). While Lufthansa is reportedly eyeing a minority stake of 19.9%, just shy of the 20% threshold requiring European Commission approval, Air France-KLM has expressed interest in exploring various options, including a minority stake.
This diverse range of interested parties highlights the competitive nature of the privatization process, with both national and international firms eager to secure a stake in TAP’s future.
While the government has yet to confirm the exact valuation or pricing structure for the upcoming sale, TAP’s strong recovery and its position as the primary carrier connecting Portugal to key international markets, particularly in Latin America and Africa, make it a highly attractive investment.
With 2025 set as the target date for the official launch of the privatization process, Portugal’s government is expected to continue engaging with potential buyers over the next few months to finalize the structure of the sale. Investors are closely watching as the next steps unfold, with many eager to see how TAP’s future will shape up under private ownership.
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